Bank of England set to ease sterling stablecoin rules as BoE warns of global standards 'wrestle' with US!

The Bank of England is preparing to soften its proposed restrictions on sterling stablecoins, with Deputy Governor Sarah Breeden telling the Financial Times the central bank is "looking very hard" at re-examining its earlier stance. The move comes after significant pushback from the industry over rules seen as overly restrictive.

The shift in tone from Threadneedle Street arrives at a charged moment for global stablecoin policy. BoE Governor Andrew Bailey last Friday warned that international regulators could face a "coming wrestle" with the US government over stablecoin standards — a signal that the race to set the global rulebook is accelerating, and that the UK is repositioning to stay competitive rather than cede ground to Washington.